June 07, 2013

ODI announces proposed rates for plans on exchange

The Ohio Department of Insurance announced yesterday that 14
insurance companies have submitted proposed rates on 214 plans that could be
available next year on Ohio’s federally run health insurance exchange (Source: “Insurance
prices still unclear,” Columbus Dispatch, June 7, 2013).

The rates represent an average 88 percent increase in costs
for health insurance companies, but it remains unclear exactly how those
increased costs will translate to higher premiums. The rates are still under
review by ODI and must be approved and submited by July 31 to the federal
government for a final review and certification for sale on the exchange.

“This information provides a partial look at what the cost
of insurance coverage may look like in 2014, but doesn’t equate to the premiums
that will be charged as market competition may influence rates and subsidies
will be provided to those under 400 percent of the federal poverty level,” said
Amy Rohling McGee, president of the nonpartisan Health Policy Institute of
Ohio.

ODI officials said they expect the proposed rates will
translate to significant rate increases for consumers in the individual market.
People that are young and healthy are expected to see the highest rate
increases, while conversely, those who are older or have a preexisting health
condition will likely see lower rates.

The number of Ohio consumers who buy individual health
coverage directly from insurers is expected to double between 2010 and 2017,
from about 3 percent of the state's population, or 350,000 Ohioans in 2010, to about 6 percent of the population, or 735,000
Ohioans, in 2017.